Analysis strength and weakness for 3 pages

5.3 Strategic Analysis 

Internal Strength and External Opportunity Strategic Fit 

Internal Strength:  Additional Market Opportunities for Increased Revenue 

External Opportunity:  Development of Specific Product Categories within HVAC Industry 

Seek product development of specific product categories in order to increase avenues of increased revenue within the HVAC industry. According to IBISWorld, there is an increased demand for solar power within the HVAC industry. The key segments that are attractive are unitary air conditioners (17.4 %), heating equipment (10.3%) and air purification (6.5%).  

The trends of solar power is still at the beginning stages, and HVAC has a particular attraction as consumers in the commercial markets, who are more keen to install and buy solar power generation for their homes (GlobeNewswire, 2020). This is an important factor for Comfort Systems in order to solidify the strength of additional revenue streams and paring their financial position, with that of the threats of fluctuations of the HVAC market. Green technologies are a trend that are highly active at the moment both in the commercial and industrial area (technology companies). According to Furlong, there is a target within the energy sector and building sector to build fully functioning green homes, who are 100% Net Zero by the year 2030 (Furlong HVAC Service, 2018). Comfort Systems is in a very good position to take advantage of this growing market, who is growing at a pace 10%  per year, according to (Nhede, 220), and Comfort System’s maintenance and construction segments can and should integrate such solution in their corporate strategy.  

Internal Weakness External Opportunity Strategic Fit 

Internal Weakness:  Innovation in Product and Service Development 

External Opportunity:  Design and Development of new service solution for the industrial sector 

Production of individual water purification system which can be offered as a service solution in the industrial market and commercial sector. Comfort System USA is a US only based business, that has had tremendous success in the industrial sector. While the industrial sector is big, there is only so much that can be done at home where the market is saturated and competition even more fierce. Comfort System has the opportunity to expand its borders beyond the US, in places such as India where industrial and commercial water purification market has low entry barriers and cost, and high potential for rapid growth (PR Newswire, 2012). In order to achieve a successful venture there, Comfort System can either invest by itself and have high cost and overhead, or they can enter a venture partnership with organizations such as Watts Water Technologies, who are looking to break into this new market due to its potential. Currently, the India water market is estimated to grow at a rate of 13% a year for the next decade (ref), as more companies look to expand their opportunities and market shares. There are also local opportunities for RO water purification needed and used in university laboratories, and in the food and beverage sector, “where preventing the spread of bacteria is paramount to ensuring healthy consumers” (Smart Water Magazine, 2019). The industrial sector also has high use and need for RO water, as it is hard to come by and maintain clean. Installing RO water purifiers (at the industrial scale) will drive down the cost of manufacturing where high water volume needs to be kept sterile and always on demand, as well as, becoming environmentally friendly.  

Comfort System needs to analyze opportunities such as these and ensure capitalization on them in order to continue its success. Their industrial and commercial sectors already have the required infrastructure and knowledge in order to add on to their business model. Their involvement in such opportunities will lead to more innovation in these sectors and will lower the costs for such technologies which will drive new market growth based on need and specification. Diversification in their industrial business, and products, and services will allow for increased efficiency and cost structure across their business divisions, leading to increased revenue and further financial strength.  

Internal Strength and External Threats Strategic Fit 

Internal Strength:  Innovation in Product and Service Development 

External Thread:  Design and Development of new service solution for the industrial sector 

Production of individual water purification system which can be offered as a service solution in the industrial market and commercial sector. 

 

 

 

 

 

Internal Weaknesses and External Threats Strategic Fit 

Internal Weakness:  Outdated Production Technology 

External Threat:  Import and Export Taxes and Tariffs  

Production of individual water purification system which can be offered as a service solution in the industrial market and commercial sector 

 

 

 

References 

Furlong HVAC Service. (2018, August 14). How Going Green is Influencing the HVAC Industry? Retrieved from Furlong: https://www.furlonghvacservices.com/how-going-greener-influencing-the-hvac-industry/ 

GlobeNewswire. (2020, August 31). Factors, such as solar PV projects under construction, in the pipeline and planning stages, and supportive policies of the government are expected to boost the cumulative installed capacity of solar energy during the forecast period. Retrieved from GlobeNewswire: https://www.globenewswire.com/news-release/2020/08/31/2085905/0/en/The-United-States-solar-energy-market-is-expected-to-grow-at-a-CAGR-of-17-32-during-2020-2025.html 

Nhede, N. (220, June 26). US: Wind and solar remain fastest-growing energy sources. Retrieved from Smart Energy: https://www.smart-energy.com/renewable-energy/us-renewables-outpace-coal-and-nuclear-says-eia-renewables/ 

PR Newswire. (2012, Oct 16). India Water Purifiers Market Forecast and Opportunities 2017. Retrieved from PR Newswire: https://www.prnewswire.com/in/news-releases/india-water-purifiers-market-forecast-and-opportunities-2017-174368511.html 

Smart Water Magazine. (2019, 11 26). Reverse Osmosis System in Industrial Process. Retrieved from Smart Water Magazine: https://smartwatermagazine.com/news/membracon/reverse-osmosis-systems-industrial-processes